13 September 2016


Ø  The Sensex and Nifty witnessed its biggest one day loss in percentage terms since June 24. The Bank Nifty fell most since April 5, 2016.
Ø  Finally, the  Sensex ended with a loss of 444 points at 28,354. The Sensex opened at 28,481 and touched an intra-day high of 28,481.11 and low of 28,251.
Ø  The  Nifty closed with a loss of 151 points at 8,716. The Nifty opened at 8,733 hitting a high of 8,747 and low of 8,699.
Ø  As we have predicted in weekly report ,Nifty closed on a bear note at 8880 .So tomorrow on upside first intra resistance is at 8892-8897 level. Next resistance are at 8919,8924,8960.
Ø  On downside first support is at 8841-36 level.Next support are at 8815-8810,8771-8766,8725-8700
Ø  The RSI—Relative Strength Index on the daily chart is 62.5151 and it has once again moved below from a topping formation which is bearish. Beyond this, it remains neutral without showing any bullish or bearish divergence or any failure swings. The daily MACD stays bullish as it continues to trade above its signal line. 
Ø  The Nifty continued its upward momentum and made its fresh 52-week high last week as it moved towards 8950, which is the highest level achieved since March 2015. However, the highest Call base at the 9000 strike has acted as intermediate hurdle.
Ø  The volatility remained under pressure and failed to exhibit any major recovery. It continued to hover around 13 levels throughout the week. No signs of weakness in the broader market were seen through a rise in volatility index.
Ø  On the daily charts, Sensex has formed a Bearish Engulfing whereas Nifty has formed a black body candle but fails to form a bearish pattern. 
Ø  Nifty Level of 8700 remains important support on declines for coming week…
Ø  Technically, Indian Stock Market would see a sharp correction for now and we can even see Nifty breaching 8700 levels. For now, Market looks to enter into negative zone, so traders can go short for now. The downfall would be step but would not last long. So traders should consider booking profits at lower levels. Overall market is positive for mid-term but negative for very short term. Traders can go short as of now and book profits at lower levels whereas investors can consider this downfall as opportunity to go long in pieces. Nifty Closed below 8800 it will a worry for Indian Stock Market. 

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